Atlas Signs Definitive Agreement to Acquire an Additional Pharmacy and Provides Update on Expanding its Global Cannabis Footprint and Progressing Its International Value Chain Strategy

2023-05-18 / @GlobeNewswire


  • Atlas Global Brands signs definitive agreement to acquire an additional Israeli pharmacy
  • The additional medical cannabis pharmacy enhances Atlas’ premium positioning in the Israeli market with its modern design, located in central Israel
  • The completion of this acquisition will add another Israel-based pharmacy, licensed to sell medical cannabis, strengthening Atlas’ geographical coverage in Israel
  • Inclusive of the previously announced signed letters of intent and definitive agreements, upon closing of these transactions, Atlas will own a majority interest in six pharmacies along with a trading house distribution centre in Israel

CHATHAM, ONTARIO and TEL-AVIV, ISRAEL, May 18, 2023 (GLOBE NEWSWIRE) -- Atlas Global Brands Inc. (“Atlas Global”, “Atlas” or the “Company”) (CSE: ATL), a cannabis company with expertise across the value chain, announces that it has entered into a definitive agreement (“Proposed Transaction), signed May 17, 2023, for the acquisition of 51% of the outstanding securities of an Israeli private limited liability company operating a medical cannabis pharmacy (the “Pharmacy). The Proposed Transaction is one of two proposed acquisitions previously announced on March 7, 2023 upon the Company entering into binding letters of intent for the acquisition of a 51% and 70% interest in two medical cannabis pharmacies in Israel.

The Pharmacy was granted a license to sell medical cannabis in October 2022 and annualized sales have since grown to approximately NIS 6.0 million (approximately CAD $2.2 million).

“The signing of the definitive agreement strengthens Atlas Global’s strategy to improve patient access to high-quality cannabis products, through new distribution points in primary locations in Israel,” said Bernie Yeung, CEO of Atlas Global. “Atlas intends to continue leveraging our value chain expertise to offer a greater assortment and variety of quality offerings, while enhancing the patient experience. We believe that this acquisition will benefit both patients and our shareholders, while continuing to expand our footprint in the international cannabis market.

Terms of the Proposed Acquisitions

Under the Proposed Transaction, Atlas will acquire a 51% interest in the Pharmacy for 1,132,000 common shares of Atlas Global (the “Consideration Shares”) and NIS 650,000 (the “Cash Consideration”) (equivalent to approximately CAD $239,743) payable at closing. The Cash Consideration may be increased by up to NIS 2,050,000 upon the Pharmacy’s revenue and profitability exceeding certain prescribed amounts for the financial years completed December 31, 2023 to 2025 (the “Additional Cash Consideration”).

The Proposed Transaction includes a call option whereby Atlas Global can acquire, and the vendor has a put option to sell, the remaining 49% interest in the Pharmacy at a price equal to the revenue of the twelve-month period ended September 30, 2026, multiplied by 0.7. The put option is subject to satisfaction of conditions of profitability and good corporate standing.  

The Consideration Shares will be subject to a lock-up period of 36 months during which 15% shall be released every six months, commencing on the six-month anniversary of the Closing.

The final structure of the Proposed Transaction shall be determined by the parties subsequent to the receipt of tax, corporate, and securities law advice.

The Proposed Transaction is subject to receipt of all necessary regulatory approvals and other customary conditions precedent.

The Proposed Transaction was negotiated at an arms’ length and will not constitute a fundamental change or result in a change of control of the Company within the meaning of the policies of the CSE. No finder’s fees are payable in connection with the Proposed Transaction.

The Proposed Transaction is expected to close in calendar Q4 2023.

Update on Previously Announced Acquisitions

In addition, as previously announced on February 7, 2023, the Company entered into a definitive agreement to acquire one trading house and majority interests in two additional purpose-built cannabis pharmacies in Israel (“Previously Announced Acquisition 1”) and as announced on March 7, 2023, entered into two binding letters of intent to acquire 51% and 70% of the outstanding securities of two additional cannabis pharmacies in Israel (the “Previously Announced Transaction 2” and with Previously Announced Transaction 1, together the “Previously Announced Transactions”).

The Company is awaiting regulatory approval for Previously Announced Acquisition 1 and expects the Previously Announced Transaction 1 will complete in calendar Q3 2023. The Company and the other party to Previously Announced Acquisition 2, continue to settle the terms of the definitive agreement for the acquisition of a 70% interest in the remaining pharmacy.

About Atlas Global

Atlas Global is a global cannabis company operating in Canada and Israel with expertise across the cannabis value chain, including cultivation, manufacturing, marketing, distribution, and pharmacy. Atlas currently distributes to eight countries: Australia, Canada, Denmark, Germany, Israel, Norway, Spain, and the United Kingdom. In addition to a differentiated product mix, Atlas operates three licensed cannabis facilities – one with EU-GMP, with three medical pharmacies in Israel and has entered into binding agreements for the acquisition of a majority interest in a trading house and three additional medical cannabis pharmacies in Israel.

Learn more by visiting:


Bernie Yeung
Chief Executive Officer

Alyssa Barry
Media and Investor Relations

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

The forward-looking information reflects management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking information, including that the conditions to completion of the transaction contemplated by the Proposed Transaction and the Previously Announced Transactions will not be satisfied or that the Proposed Transaction and the Previously Announced Transactions will be terminated.

Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. New risk factors emerge from time to time, and it is impossible for the Company’s management to predict all risk factors, nor can the Company assess the impact of all factors on Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in any forward-looking information.

The forward‐looking statements set forth herein concerning the Company reflect management's expectations as at the date of this news release and are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, other than as required by law.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Primary Logo

Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok